Amtrak has a monopoly on rail travel in the U.S. It uses price discrimination to offer a discounted price for adults who are currently enrolled students. The marginal cost per train ticket from Baltimore to New York is 100. The demand for regular tickets is P=1000-5Q and the demand for student tickets is P=500-Q. b. Find the monopoly price and quantity for regular adult tickets? c. Find the monopoly price and quantity for discounted student tickets.

Amtrak has a monopoly on rail travel in the U.S. It uses price discrimination to offer a discounted price for adults who are currently enrolled students. The marginal cost per train ticket from Baltimore to New York is 100. The demand for regular tickets is P=1000-5Q and the demand for student tickets is P=500-Q. b. Find the monopoly price and quantity for regular adult tickets? c. Find the monopoly price and quantity for discounted student tickets.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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DN1(b, c)
Amtrak has a monopoly on rail travel in the U.S. It uses price discrimination to
offer a discounted price for adults who are currently enrolled students. The
marginal cost per train ticket from Baltimore to New York is 100. The demand for
regular tickets is P=1000-5Q and the demand for student tickets is P-500-Q.
b. Find the monopoly price and quantity for regular adult tickets?
c. Find the monopoly price and quantity for discounted student tickets.

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